However, according to the latest research report by MEED Insight, ‘Mena Renewable Energy 2012′, states right across the region are now planning a substantial hike in renewable energy capacity over the coming decade to meet high power demand growth, limit the use of oil and gas feedstock in power generation, and take advantage of a forecast drop in solar and wind generated electricity.

Ten of the 14 Arab states covered in this report have set 2020 renewable energy targets, ranging from 5% of the total energy mix to 42%. Even those that have not, such as Saudi Arabia and Iraq, are talking of implementing major solar power programmes. The targets imply that renewable energy capacity will have to rise three-fold to at least 27,000MW if they are to be met.

Even though renewable energy is being taken much more seriously across MENA, the 2020 targets are highly ambitious, given the limited track record of most regional states. In parts of the region, much still needs to be done on clarifying, developing and improving the regulatory and institutional framework. Issues such as feed-in tariffs and grid access also need to be addressed. Finally, the removal of red-tape and slow-decision making is a prerequisite given that both have seriously hampered the development of new projects in the past in North Africa.

Renewable energy plans have been hit by the outbreak of conflict, civil unrest and regime change across much of the region. In North Africa and Syria, numerous projects have been delayed or put on hold since the start of 2011. Even once political stability returns, it is likely to be some time before they are reactivated. Most vulnerable remain the raft of planned solar and wind independent power projects (IPPs), which will require substantial commercial finance. If they are to proceed, bilateral and multilateral financing may well have to play a much greater role than previously envisaged.

“For most Arab states, raising the contribution of solar and wind power in the energy mix is only one part of the renewables drive,” says Angus Hindley, MEED’s Research Director. “Increasingly, governments see the capacity push as nurturing new solar-related manufacturing, which will not only create much-needed employment but also assist in economic diversification.”

Along with providing a detailed analysis of the existing renewable energy sector across the Mean region, this report offers a detailed forecast for demand growth, additional capacity and investment requirements up to 2020. It has been based on face-to-face interviews with key players in the sector and supported by proprietary data compiled by MEED and MEED Projects.

Source: www.ameinfo.com

Although Saudi Arabia, if they would keep producing the same amounts of oil as now has reserves which could last for around 80 years, they are concerned about their own, domestic energy consumption. It is significantly increasing and could eventually limit the country’s export. The country currently needs around forty gigawatts to satisfy its demands, while it is estimated that in 20 years that number will rise to one hundred and twenty gigawatts.

“We have started to take the required steps to utilize solar and nuclear energy,” said Ali al-Naimi, the oil minister. He also noted that the saying “energy derived from fossil fuels is different than that from renewable sources” doesn’t hold water anymore, and that the world needs all the energy they can get.

Government’s representatives said that their basic goal is to meet the demands of the domestic market from renewable sources, thus leaving them more oil for export.

Source: www.renewableenergyspot.com

Despite the uncertainty over the pace of recovery in the world economy next year and a United Nations drive to reduce carbon emissions, industry experts say the demand for oil and gas will rise in coming years.

Saudi Arabia is the largest producer of the Organisation of the Petroleum Exporting Countries (OPEC). Its production policies therefore have an impact on international prices.

The four-day Saudi Oil and Gas 2010 trade conference from January 17 is aimed at providing a gateway to various projects in Saudi Arabia.

Fadi Keyrouz, Event Manager of Saudi Oil & Gas at Riyadh Exhibitions Company, said leading figures from the world of oil and gas, particularly key investors from various related industries, would be flocking to the exhibition to “look for lucrative investment deals, including ambitious joint-venture projects.”